Copper hit fresh high on Monday and ignores overbought technicals

COPPER

Copper posted fresh 26-month high on Monday, signaling bearish continuation after brief consolidation on Thu/Fri.
Contract for September delivery hit new high at $2.9190, but was so far unable to hold gains, as strongly overbought daily studies continue to warn of correction. However, indicators on daily chart are heading higher or in sideways mode and so far missing to generate stronger bearish signal.
Today’s low at 2.8765 marks initial support, followed by 2.8508 (Fibo 23.6% of 2.6300/2.9190 and more significant Friday’s spike low at 2.8400, which marks the first pivot.
Break here is needed for stronger bearish signal and extension towards next pivotal support at 2.8086 (Fibo 38.2%).
At the upside, next target lies at 2.9248 (FE 161.8% of the wave C from 2.6300, the third wave of five-wave cycle from 2.5385 (21 June trough), with the wave capable of travelling to its FE 176.4% at 2.9514.
From the fundamental side, weak dollar and positive outlook for the economy of the world’s biggest copper consumer – China, keep copper price supported for further advance

Res: 2.9040; 2.9190; 2.9248; 2.9310
Sup: 2.8765; 2.8610; 2.8508; 2.8400